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Debtwired!

Paul Hastings' Jennifer Daly on private credit trends and deal structure

Dec 12, 2024
Jennifer Daly, the Head of Private Credit and Special Situations at Paul Hastings, offers deep insights into the evolving private credit market. She discusses trends and optimism surrounding mergers and acquisitions in sectors like healthcare and technology. The conversation highlights the implications of tariffs, the balance between rising costs and lower interest rates, and the shift towards more flexible deal structures. Daly also navigates the differences between Chapter 11 bankruptcy and out-of-court restructuring, emphasizing the new protections for borrowers.
33:19

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Quick takeaways

  • The private credit market is thriving due to favorable political conditions, with strategic partnerships enhancing opportunities for growth amidst rising M&A activity.
  • A shift in deal structures reflects a move towards more flexible financing terms and protective clauses, indicating evolving borrower-lender dynamics in private credit.

Deep dives

The Growing Landscape of Private Credit

The private credit market is considered to be in a 'golden age', with increasing activity driven by a favorable political environment. Strategic partnerships and joint ventures between banks and private credit funds are becoming more common as firms position themselves for a robust deal environment. The expectation of rising M&A activity is contrasted by potential challenges related to tariffs and economic volatility, which could impact underwriting and business operations. Overall, the market is viewed as still in its early stages, with significant opportunities for growth ahead.

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